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AN EXAMPLE OF A PASSIVE INCOME CREATION WITH ETF.
I’m going to show you how and why to create a passive income using a simple ETFs.
In the picture you can see a generic ETFs trend.
grafico-modificato-etf
If you bought this ETFs in May 2007 you would pay for it about 27€ per share (red vertical line).
In May 2015 the price was again around 27€. The profit is zero after 8 years of investment.
You also had to endure a 66% loss during 2009 when the quote was only 9€!
At first sight it would seem a bad investment!
But there is a small detail that radically changes the tables: the coupons!
Beyond the value, the ETFs distributes a quarterly dividend as indicated in the following table.

10/12/2015 0,6356 USD 30/12/2015 Unico 1,3207
27/08/2015 0,2384 USD 17/09/2015 Unico
28/05/2015 0,2902 USD 18/06/2015 Unico
26/02/2015 0,1565 USD 19/03/2015 Unico
27/11/2014 0,5781 USD 18/12/2014 Unico 1,714
20/08/2014 0,4374 USD 10/09/2014 Unico
21/05/2014 0,6198 USD 11/06/2014 Unico
26/02/2014 0,0787 USD 19/03/2014 Unico
27/11/2013 0,5075 USD 18/12/2013 Unico 1,5862
28/08/2013 0,3385 USD 18/09/2013 Unico
29/05/2013 0,4204 USD 19/06/2013 Unico
20/02/2013 0,3198 USD 13/03/2013 Unico
21/11/2012 0,3995 USD 12/12/2012 Unico 1,5864
22/08/2012 0,5027 USD 12/09/2012 Unico
23/05/2012 0,4238 USD 13/06/2012 Unico
22/02/2012 0,2604 USD 21/03/2012 Unico
23/11/2011 0,4426 USD 21/12/2011 Unico 1,58
24/08/2011 0,5119 USD 21/09/2011 Unico
25/05/2011 0,3956 USD 22/06/2011 Unico
23/02/2011 0,2299 USD 23/03/2011 Unico
24/11/2010 0,4383 USD 22/12/2010 Unico 1,2809
25/08/2010 0,37 USD 22/09/2010 Unico
26/05/2010 0,3425 USD 23/06/2010 Unico
24/02/2010 0,1301 USD 24/03/2010 Unico
25/11/2009 0,2945 USD 23/12/2009 Unico 0,9617
26/08/2009 0,2552 USD 23/09/2009 Unico
27/05/2009 0,2484 USD 24/06/2009 Unico
25/02/2009 0,1636 USD 25/03/2009 Unico
26/11/2008 0,502 USD 24/12/2008 Unico 1,7196
27/08/2008 0,3308 USD 24/09/2008 Unico
28/05/2008 0,6622 USD 25/06/2008 Unico
27/02/2008 0,2246 USD 26/03/2008 Unico
28/11/2007 0,5697 USD 24/12/2007 Unico 1,7477
29/08/2007 0,3458 USD 26/09/2007 Unico
30/05/2007 0,6004 USD 27/06/2007 Unico
28/02/2007 0,2318 USD 28/03/2007 Unico
29/11/2006 0,4905 USD 28/12/2006 Unico

During 2015 it distributed 1.3207$ shares (around 1.2 €).
With a quotation of 27€ the dividend yield is
1.2 x 100 / 27 = 4.4%
If you multiply 4.4% for the number of years of the investment you will get 35.2% of gross profit.
Now the investment appears to be less bad!
But let’s go on!
If you delayed the purchase in many steps during 2008/2009, what could happen to your money?
I make an extreme example to understand the concept:
Would the dividend profit be 44% if I bought in 2009?
NO!
As you can see in the table, in 2009 the dividend was only 0,96$ / 0,75€ per quote (with a 1,28 €/$ change). But in 2009 the quote price was 9€ (not 27€) so the dividend profit was
0.75 x 100 / 9 = 8,33%.
So if you buy in a panic context and not considering the frightening revaluation of the investment from 9 to 27€ per quote, but thanks to the dividend flow, you would double your investment in 10 years!
BUT HOW MANY INVESTORS ARE ABLE TO VALUE AND DECIDE IN THIS CONTEXT WITHOUT BEING EMOTIONALLY CONDITIONED?

 

 

 

CREATE YOUR MILLIONAIRE INCOME WITH THE DEDICATED TOOL OF EASY TREND

in which market can I invest? How can I do it? (link)

Abbonati a Easy-Trend !

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